tax issues for solar energy projects: investment tax
TRANSCRIPT
Tax Issues for Solar Energy Projects: Investment
Tax Credit, Ownership Structuring, Federal
and State Tax Challenges
Today’s faculty features:
1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific
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TUESDAY, JULY 23, 2019
Presenting a live 90-minute webinar with interactive Q&A
Tony Grappone, CPA, Partner, Novogradac, Andover, MA
Eli M. Katz, Partner, Latham & Watkins, New York
Jorge Medina, Partner, Pillsbury Winthrop Shaw Pittman, Los Angeles
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Speaker Contact Information
Pillsbury Winthrop Shaw Pittman LLPJorge Medina
[email protected](212) 751-4864
Tony Grappone
Novogradac & Company [email protected]
(617) 449-3030
(213) 488-7117
Eli M. Katz
Latham & Watkins LLP
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When is the ITC Earned?
The ITC is generated 100% on the project’s placed in service date
• Vests 20% per year
When is a project considered placed in service
• Condition or state of readiness and availability for its specifically assigned function;
• All necessary permits and licenses received (PTO);
• Synchronization into power grid; and
• Completion of critical tests
7
Other Rules Unique to the ITC
Claiming the ITC
• To claim the ITC, you must be an owner (or lessee) of the ITC property on the property’s placed-in service date◦ Special rule for sale leaseback transaction (3-month window to transfer asset
to investor and lease back)
• Because of this rule, ITCs cannot be “sold” to third parties which do not have an interest in the project
◦ Allocated to members based on general profits percentage
8
What Property is Eligible for the ITC?
In order to be eligible for the ITC, the energy property must:
• Be depreciable or amortizable;
• Have an estimated life in excess of 3 years; and
• Be tangible personal property or other property if such property is used as an integral part in the production of electricity
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Other Rules Unique to the ITC
Pass-through of ITC
• Upon election, the owner of ITC property may pass-through the ITC to a lessee
• When ITC is passed-through, the basis claimed by the lessee is equal to the fair market value
ITC Basis Reduction
• The depreciable basis of ITC property is reduced by 50% of the ITC claimed on such property
• Exception in structures where the ITC is passed through to a lessee
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Tax Credit Declining to 10% for Solar
• The § 48 ITC for solar ramps down in accordance with the following schedule for the start of construction:
• To qualify for more than a 10% § 48 ITC, a project must be placed in service by the end of 2023, regardless of its start of construction date
◦ Wind, unlike solar, does not have a placed in service statutory deadline, but the IRS’s guidance created a “soft” deadline (discussed below)
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2018 2019 2020 2021 2022
30% 30% 26% 22% 10%
Start of Construction Guidance –IRS Guidance for Solar
• Renewable energy tax credits determined by when the project started construction
• IRS issued Notice 2016-31 for Wind and Notice 2018-59 for Solar:
◦ Projects have until December 31 of the year that included the fourth anniversary of the start of construction date to be "placed in service" (e.g., if construction started on a wind project in June 1, 2016, then project must be in service by December 31, 2020) to avoid "continuous" work/construction requirement
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IRS Start of Construction Guidance• Two methods to start construction:
◦ Commence "physical work of a significant nature" or
◦ Incur at least 5% of the cost of the project
Must take delivery of equipment purchased with 5% within 3.5 months of payment (e.g., April 15 if pay on December 31)
But must take delivery in same year if vendor provides debt financing
• Both methods generally follow the Treasury Cash Grant guidance but with some key differences
• No minimum level of work was required in order to meet the "physical work of a significant nature" requirement◦ Qualifying work – operational road construction, digging turbine foundations,
manufacturing a customized step-up transformer or manufacturing other equipment not held in inventory by the manufacturer
◦ Work not done by the project owner directly must be performed pursuant to a “binding written contract,” which has certain highly technical requirements
◦ Look-Through Rule – EPC contractor can satisfy 5% safe harbor for project owner if EPC contractor and project owner have a binding written contractor (EPC contractor effectively finances 5% safe harbor for project owner)
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Start of Construction – Market Impact
• Analysts estimate over 40GW of wind was safe harbored in 2016
◦ 80% PTCs paid for by lower equipment costs + higher capacity factors
◦ 60% - no clear line of sight – but industry is optimistic
• How liberal will the industry (tax equity) interpret the start of construction rules
◦ Start-stop-start
◦ Foot-faults in payments/delivery/contract mechanics
◦ Going outside the 4-year window
Continuous efforts
Continuous construction
Anticipated excusable disruptions
• Solar ITC ramp down will depend on:
◦ Ability of industry to find viable start of construction strategies
◦ IRS/courts reactions to wind safe-harboring techniques
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Three Principal Tax Equity Structures
• The three structures are partnership flips, inverted leases and sale-leasebacks.
• Solar may use any of the three transaction structures but there are practical and market based limitations.
◦ Partnership flips are the most common structure.
◦ Inverted leases are primarily used in residential rooftop and small commercial project aggregations.
◦ Sale-leasebacks are typically limited to utility scale projects and are less common today that 5-10 years ago.
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Partnership Flip Transaction
• A partnership flip is a simple concept. A sponsor brings in a tax equity investor (“TEI”) as a partner to own a renewable energy project together.
• The partnership allocates taxable income and loss 99% to the tax equity investor until the investor reaches a target yield, after which its share of income and loss drops to 5% and the sponsor has an option to buy the investor's interest. Cash may be distributed in a different ratio before the flip.
• Yield-based flips in the solar market price to reach yield in six to eight years, wind deals are ten years because of the PTC profile.
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Basic Partnership Yield Flip
FMV Call Option
Sponsor1/95
Tax Equity Investor99/5
SponsorAffiliate PPAO&M Contract
Project
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Partnership Flip Safe Harbor
• The IRS issued guidelines for partnership flip transactions in 2007. The guidelines provide a "safe harbor" for transactions that conform to them. Most transactions follow the safe harbor.
• The IRS has said that the guidelines were written with wind projects in mind and are not a safe harbor for solar transactions.
◦ Not intended as an indictment of solar but an acknowledgement that different considerations can apply.
◦ Most solar transactions follow the safe harbor principals anyway.
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Fixed-Flip Structure for Solar
• In addition to the yield-based flip, for solar transactions there is also a fixed-flip structure.
• As opposed to being yield based, this transaction “flips” at a date certain after the ITC recapture period.
• This structure is only offered by a subset of TEIs but has grown in popularity over the last few years.
• The intent of the structure is to leave as much cash as possible for the sponsor to monetize in an alternative fashion.
• Since the structure is not yield based, it uses alternative mechanisms to protect investor downside such as preferred cash distributions and put call options.
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Fixed Partnership Flip
FMV Call Option
Sponsor1/95
Tax Equity Investor99/5 +
2% preferred cashdistributions
UtilityPPAO&M Contract
Project
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Features of a Flip Transaction
• The sponsor is responsible for day-to-day management of the project. TEI consent is required for a list of "major decisions.“
• The TEI may invest by buying an interest in the partnership from the sponsor ("purchase model") or by making capital contributions to the partnership ("contribution model").
• In solar transactions, the purchase model may give the TEI a larger basis step up for calculating tax benefits but creates gain on sale for the sponsor.
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Capital Account Issues in Partnership Flips
• Almost all partnership flip transactions have "absorption" issues.
• Each partner has a "capital account" and "outside basis" that are two ways of measuring what the partner put into the deal and what it is allowed to take out in tax benefits.
• Most TEIs run out of capital account before they are able to absorb 99% of the depreciation.
• Few tax equity investors are willing to take a 100% depreciation bonus. Even where they are willing, it creates capital account complications.
• TEIs need to agree to a deficit restoration obligation (“DRO”) to efficiently absorb the tax benefits.
• In many solar deals, the income allocated to the tax equity investor drops to 67% after year 1 until the partnership turns tax positive.
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Sale-Leaseback Transaction Basics
• In a sale-leaseback, the solar company sells the project to a tax equity investor and leases it back (typically for 80% of the useful life).
• Unlike a flip where the TEI gets at most 99% of the tax benefits, all the tax benefits are transferred to the TEI without complicated partnership accounting. The TEI calculates tax benefits on the fair market value purchase price it pays for the project.
• The lessee has a gain on sale to the extent the project is worth more than it cost to build.
• The lessee retains a purchase option to repurchase the asset at the end of the lease term.
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Sale-Leaseback Explained
• The sponsor/lessee is usually required to repay part of the purchase price as prepaid rent.
• The rent prepayment is considered a loan for tax purposes pursuant to IRC Section 467 that is deemed repaid as the prepayment is eliminated.
• Lease terms are typically limited to 80% of the assets useful life.
• Sale-leasebacks remain common in the C&I and utility-scale solar markets. They are uncommon in the solar rooftop market.
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Inverted Leases
• Inverted leases are used mainly in the rooftop market.
• The solar company assigns customer agreements and leases rooftop solar systems in tranches to a tax equity investor who collects the customer revenue and pays most of it to the solar company as rent.
• The solar company passes through the investment credit to the TEI but keeps the depreciation. Special rules allow the TEI to claim the ITC based on the FMV of the eligible assets.
• The solar company takes the asset back at the end of the lease.
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Basic Inverted Lease
PPA
Sponsor
Tax EquityInvestor
Lessor
Lease
Sponsor
SponsorAffiliate
Utility
MasterInstallationAgreement
Assignment of customer agreements
Customers
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Basic Inverted Lease
Sponsor1/99
Lease
Sponsor51%
Tax Equity Investor99/5
+ withdrawal right
Lessee49%
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Inverted Leases Explained
• Sponsors like inverted leases because they get the asset back without having to pay for it, and the investment credit is calculated on the fair market value of the solar equipment rather than its cost.
• Unlike a sale-leaseback, the step up in asset basis does not come at a cost to the sponsor of a tax on a commensurate gain.
• There are no IRS guidelines for solar inverted leases. However, the structure is common in historic tax credit deals, and the IRS acknowledged it in guidelines in early 2014 to unfreeze the historic tax credit market after a US appeals struck down an aggressive form of the structure in a case called Historic Boardwalk.
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Inverted Lease Structuring
• The TEI must have upside potential and downside risk to be considered a real lessee. Some tax counsel like to see a "merchant tail.” Others focus on the amount of prepaid rent paid by the lessee and want to see at least a 20% rent prepayment.
• Inverted leases raise 20% to 40% of project value.
• The central challenge in inverted leases is how the capital raised by the structure moves from the TEI to the sponsor. In the conservative form, it moves as prepaid rent. In an overlapping ownership structure, the lessor makes a capital contribution to the lessor, and the lessee owns 49% of the lessor.
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Comparing the Three Structures
• The three structures vary in terms of the amount of capital raised, risk allocation and the timing of when the TEI must invest. The sponsor must turn to other sources of capital (debt and equity) to raise the rest of the project cost.
• While the structures themselves can vary in underlying tax risk, the primary drivers of tax risk are in the internal structuring.
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Business Risks In Each Structure
• The principal business risks in any transaction are weather, technology and off-taker credit.
• In a sale-leaseback, the sponsor has a hell-or-high-water obligation to pay rent and must indemnify the TEI for loss of tax benefits and any acceleration of rental income due to a lessee breach of a representation or covenant.
• In a flip, the TEI's return turns on how well the project performs. The TEI's protection is it sits on the project at a 99% level until it reaches a target yield.
• In an inverted lease, the risk can vary significantly based on the structure.
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Tax Risk Allocation
• Tax risk are allocated between the sponsor and TEI through fixed tax assumptions.
• The fixed tax assumptions can vary by structure.
• Tax basis risk in solar deals tends to be borne by the sponsor, although this has been true only since 2010.
• Tax risks about which the sponsor has special insight are borne by the sponsor.
• Tax risks into which both the sponsor and TEI have equal insight are generally borne by the TEI.
• Risks over which neither has special insight are “jump balls”.
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Timing of Tax Equity Investment
• Turning to timing, the TEI must be a partner in a flip deal before the project is placed in service.
• In some transactions, the TEI makes enough of its investment before the project is put in service to be a partner and contributes the rest after final completion.
• Inverted leases must be done before assets go into service.
• A sale-leaseback can be done up to three months after the asset is put in service.
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Corporate Rate Reduction
• Corporate rate drops from 35% to 21% effective 1/1/18
◦ Means at a high level that corporations are paying 40% less tax, so there is less tax appetite in the tax equity market
Tax equity market remains well supplied
◦ Reduces the value of depreciation to corporations but does not impact the value of tax credits (so long as the corporation owes enough tax to use them)
• Corp Alternative Minimum Tax (AMT) is eliminated
◦ Means corporations do not have to be concerned about AMT limiting their ability to use PTCs after the fourth year of the project’s operation or 200% declining balance depreciation deductions
3737
New Tax Rates – Choice of EntitySponsor platforms largely held in pass-through entities
• Decision may depend on “GrowthCo” Vs. “YieldCo” model;
• Will the Corporate Tax Rate stay at 21%?
• Foreign earning assets should be held through US C Corporations (e.g., organized in Delaware)
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Comparison of Prior Law and Post-Act Federal Effective Tax Rates Applicable to Corporations and Pass-Through Entities*
Prior Law New Law
Corporation Partnership Corporation Partnership
Business Income $100 $100 $100 $100
§199ADeduction
- - - Up to 20%
Taxable Income $100 $100 $100 $80
Tax Rate 35% 39.6% 21% 37%
Entity Net Income
$65 $60.40 $79 $70.4
Tax Rate on Corporate Dividend
20% - 20% -
Owner Net Income
$52 $60.40 $63.20 $70.40
Effective Tax Rate
48% 39.6% 36.8% 29.6%
* Figure omits the impact of the 3.8% Medicare surtax, which applies to corporate
and REIT dividends and, in some cases, pass-through income (such as that relating
to a passive activity). It is assumed that the owners of the corporation or
partnership are not corporations.
Tax Reform Impact on Tax Equity: Bonus Depreciation
• A small number of projects can be structured with 100% bonus depreciation election, even though the benefit is probably marginal
• Key structuring challenges include
◦ Tax equity investor’s Section 704(b) “capital account” constraints (increasing the amount of “DRO” reduces the amount of loss reallocations)
◦ Tax equity investor suspended losses in “outside basis” (Section 704(d))
• Wind projects tend to be better candidates for bonus depreciation due to higher starting outside basis of the tax equity investor
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Bonus Depreciation – Cheat Sheet
• 100% expensing on almost all assets through 2022
• Gradual phase-out through 2026
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Bonus Depreciation Rates Under Tax Reform
Placed in Service Year Bonus Depreciation Percentage
Personal Property (i.e., not Real Estate or Intangibles)
Longer Production PeriodProperty and Certain
Aircraft
Portion of Basis of Qualified Property Acquired on or before Sept. 27, 2017
Sept. 28, 2017 – Dec. 31, 2017 50% 50%
2018 40% 50%
2019 30% 40%
2020 None 30%*
2021 and thereafter None None
Portion of Basis of Qualified Property Acquired after Sept. 27, 2017
Sept. 28, 2017 – Dec. 31, 2022 100% 100%
2023 80% 100%
2024 60% 80%
2025 40% 60%
2026 20% 40%
2027 None 20%**
2028 and thereafter None None
* 30% applies to the adjusted basis attributable to manufacture, construction, or production before
January 1, 2020, and the remaining adjusted basis does not qualify for bonus depreciation. 30%
applies to the entire adjusted basis of certain aircraft placed in service in 2020.
**20% applies to the adjusted basis attributable to manufacture, construction, or production before
January 1, 2027, and the remaining adjusted basis does not qualify for bonus depreciation. 30%
applies to the entire adjusted basis of certain aircraft placed in service in 2027.
100% Bonus Depreciation Rules
• 100% expensing (i.e., “bonus” depreciation) is available for wind and solar property that is (i) new (but see below), (ii) acquired after September 27, 2017, and (iii) placed in service after September 27, 2017, and before January 1, 2023
◦ 20% annual phase down for property placed in service in 2023 or later; full phase out (i.e., no bonus) for property placed in service in 2027 or later
◦ For property acquired before September 27, 2018: (i) 50% for property placed in service before January 1, 2018; (ii) 40% for property placed in service in 2018; (iii) 30% for property placed in service in 2019; and (iv) 0% for property placed in service after 2019
Property is not treated as acquired after the date on which a “written binding contract” is entered into for such acquisition
◦ Special rules apply to used property acquired after September 27, 2017
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100% Bonus Depreciation Rules(cont’d)
• Used property that is acquired after September 27, 2017, is eligible for 100% bonus depreciation if the following requirements are met:
◦ The property has not been used by the taxpayer (or any member of taxpayer’s consolidated group) at any time prior to such acquisition
◦ The taxpayer does not acquire the property from certain related persons
A partnership is considered related to a partner that owns more than 50% of the capital interest or profits interest therein
◦ The taxpayer does not take a carryover basis in the property (e.g., through a contribution to a partnership)
• The cost of used property does not include the basis of any other property already held by the taxpayer (e.g., exchanged basis)
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100% Bonus Depreciation Rules(cont’d)
Special Partnership Items
• Section 704(c) remedial allocations are not eligible for bonus depreciation
• Section 734(b) basis adjustments (i.e., step-ups resulting from distributions in excess of a partner’s outside basis) are not eligible for bonus depreciation
• Section 743(b) basis adjustments (i.e., step-ups resulting from a transfer of a partnership interest) are generally eligible for bonus depreciation
◦ The transferee partner must still satisfy the acquisition requirements with respect to the partnership property to which the adjustment relates (e.g., not impermissibly related to the transferor, no carryover basis, etc.)
◦ The transferee partner must not have previously had a “depreciable interest” in the portion of the partnership property deemed acquired
◦ Prior use of the partnership property by the partnership is not relevant
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BEAT Basics
• Section 59A enacted by Tax Reform
◦ Functions as a minimum income tax that requires certain corporate taxpayers to pay as tax at least a specified percentage of their taxable income, as modified to exclude certain deductions that are deemed to constitute base erosion tax benefits
◦ Designed to limit the tax benefits of payments made by corporate taxpayers subject to US income tax to affiliates that are not subject to US tax, or are subject to a reduced rate via income tax treaty, as a result of receiving the payments
• Basic Formula: “applicable taxpayers” must pay the “base erosion minimum tax amount” (BEMTA), which equals the excess, if any, of (1) the “base erosion and anti-abuse tax rate” (BEAT rate) multiplied by the applicable taxpayer’s “modified taxable income” over (2) the applicable taxpayer’s “adjusted regular tax liability”
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BEAT Basics: BEMTA Visualized
45
Through 2025, 20% of energy tax credits (PTC and ITC) and low income housing tax credits are subtracted. After 2025, all tax credits are subtracted.
Start with the
taxpayer’s taxable income*
Add back base erosion tax benefits and the base
erosion percentage of the taxpayer’s NOL
deductions *
Modified taxable income
Multiply modified taxable
income by the BEAT
rate
Adjusted regular tax liability
Start with the
taxpayer’s regular tax
liability
Subtract certain
tax credits
Base erosion minimum tax amount or
BEMTA
Subtract the result of Step 2 from the result of
Step 1
Step 1 Step 3 Step 2
$ $
1A 1B 1C 2A2B
3
* The breaks in the two columns at the left are included because the heights of these columns correspond to
taxable income whereas the heights of the other columns correspond to tax liability
Impact of BEAT• Most tax equity investors have stayed in the market
◦ New entrants have exceeded those who departed
◦ Some have shifted to a syndication business model
• Limited impact on tax equity pricing
• Foreign-parented tax equity investors most likely to be impacted
• Some deals “price in” BEAT as an alternative computation of an “After-Tax IRR” to ensure the TE’s return is not too low after BEAT
• Some deals factor BEAT into sizing the TE investment
• Due to BEAT’s treatment of tax credits starting in 2026, BEAT is more of an issue for wind PTC deals due to 10-year PTC stream v. ITC in placed in service year
• Impact of recent regulations still being worked out by the market
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New Partnership Audit Rules
• New partnership audit rules replaced the prior TEFRA rules in 2018.
• As a default position the new rules keep audit liability at the partnership, as opposed to pushing out the liability to the partners.
• The IRS will assess back taxes at the partnership level starting with the 2018 tax year.
• In most deals, a “push-out election” is made to address new partnership audit rules.
• The new rules replace the concept of a tax matters partner with a partnership representative.
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Deficit Restoration (DRO) Issues
• The IRS expressed doubts in October 2016 about whether some DROs are real.
• There should be “commercially reasonable provisions for enforcement and collection of the obligation,” and the partner should be “required to provide (either at the time the obligation is made or periodically) commercially reasonable documentation regarding the partner’s financial condition to the partnership.”
• The IRS has now started to require that partnerships track and report partner DROs in their tax returns.
• It is unclear what the IRS wants to do with this information.
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Cash Sweeps / Tax Insurance
• Cash sweeps are another source of tension in deals.
• Sponsors want to retain enough cash to cover debt service on back-levered debt.
• Many investors agree to limit sweeps to 50% to 75% of cash or, in some cases, to prevent the sweep from reaching cash to cover principal and interest on the debt.
• Tax insurance and rep & warranty insurance have become popular transaction features over the last 5 years as a way to mitigate or eliminate cash sweeps.
• As the market has evolved, tax ins. is beginning to cover things like begun construction risk.
50
Step-Ups in Tax Basis
• Almost all Solar deals involve some amount of ITC step-up
◦ 20% “developer fees” if using a Developer Services Agreement or an “entrepreneurial incentive” in “cost” approach valuation
◦ Fees on top of fees
◦ Cash Grant litigation – current developments
• Step-up risks are largely borne by sponsor
• Role of appraiser
• Allocating value to Power Purchase Agreements
• Sponsor should control basis indemnity disputes with the IRS
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Battery Storage
Must be privately owned (can’t be owned by a public utility)
If a stand alone system, no ITC and depreciable over 7 years
If storage incorporated into a new system…
• If not more than 25% of the energy stored comes from non-solar sources, then you can depreciate 100% of the cost using 5 yrMACRs (which generally then gest reduced by 50% of any ITCclaimed), otherwise not ITC eligible and
◦ 1.48-9(d)(6)
◦ 168(e)(3)(B)(vi)
The portion that is ITC eligible is the estimated annual percentage of energy stored that was generated by the energy property
Some are of the view that pre-existing facilities can be retrofitted based on a wind PLR (201208035)
© 2019
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State and Local Tax Issues: Property taxes
Land owned or leased
• For leased land, often passed through to the tenant (i.e. like a triple net lease).
• If not passed through, essentially built into the rent.
Tangible personal property
• Can vary and often tax agreements executed.
• Some states provide exemptions for solar.
© 2019
State and Local Tax Issues: Transfer taxes• Generally, not an issue unless real estate involved (i.e. land)
54
State and Local Tax Issues: Sales and Use
Development phase
• Sales taxes incurred by customers of EPC contracts:
◦ Some states provide full, partial or no exemptions. It’s usually the burden of the customer to provide the vendor with the exemption certificate.
◦ If you planned to re-sell as a plan then the final seller generally charges the sales tax unless the ultimate buyer provides an exemption certificate.
© 2019
55
State and Local Tax Issues: Sales and Use
Operations phase
• Electricity revenue
◦ Is there a sales tax exemption?
◦ Is the PPA contract structured as a service contract?
◦ Is the customer a tax exempt or a corporate customer?
• REC revenue
◦ Sold separate or bundled in with the PPA?
◦ Sold separate to a re-seller or direct to a utility?
• Capacity revenue
◦ Is the customer the utility and is the capacity sold considered an intangible asset?
© 2019
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58
Qualified Opportunity Zone -Highlights
• Intended to attract investor capital to low-income census tracts selected by governors of each state
• Many of the early deals have involved urban areas already undergoing gentrification
• Developers and local governments are slowly getting experience with other types of deals
A series of tax breaks associated with certain low income communities called “Qualified Opportunity Zones.”
© 2019
The Essential Elements of a QOZ Deal
Investor Level:
• Gains, attributes of gains and taxpayers
• Timing of 180 day investment period from investor to QOF
Qualified Opportunity Fund (QOF) Level:
• Investments eligible as qualified OZ property (QOZP) and 90% requirement
• Certification and timing of 6-month / year-end 90% testing dates
Qualified OZ Business (QOZB) Level:
• Investments that qualify as QOZB Property (QOZBP) and 70% threshold
• QOZB requirements: 50% income in OZ, 40% intangible property, <5% Nonqualified Financial Property (NQFP)
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QOF
QOZBusiness
Investor(s)
© 2019
Typical Structure
QOFGeneralPartner
Investor(s)
QOZBusiness
GeneralPartner
Investor(s)
(180 days)
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Policy Highlights
SEIA, on behalf of almost 1,000 solar companies, sent a letter to congress on July 17th urging an extension of the 30% ITC. Among other things, the letter touted:
• $140 billion in economic activity since inception
• 240,000 American workers currently, which has doubled since 2010
Senate Republicans lack a renewables champion since Senator Dean Heller (R-Nevada) left.
Senator Chuck Grassley (R-Iowa) has historically been a stronger PTC champion
House Representative Richard Neal (D-Massachusetts) is a leading voice for renewables.
• Note: There’s also a 1 year PTC extension in the house extenders bill however House republicans aren’t necessarily convinced of the funding© 2019
64
© 2019
2019
CURRENT LEGISLATION
Clean Energy for America ActIntroduced May 2, 2019
Cosponsors: 25D 1I 0R
WYDEND-OR
SCHUMERD-NY
STABENOWD-MI
CANTWELLD-WA
66
© 2019
2019
CURRENT LEGISLATION
RETC Transferability BillIntroduced May 14, 2019
Cosponsors: 1D 1R
BLUMENAUERD-OR
LAHOODR-IL
To amend the Internal Revenue Code of 1986 to allow for transfers of the renewable electricity production credit and the energy credit.
“ “
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